JPMorgan Expects Moroccan Dirham to Stabilize Over Medium Term

JPMorgan Expects Moroccan Dirham to Stabilize Over Medium Term
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JPMorgan Expects Moroccan Dirham to Stabilize Over Medium Term

JPMorgan Expects Moroccan Dirham to Stabilize Over Medium Term

The exchange rate of the Moroccan dirham upheld stability for the third day, following the enforcing of a decision to move to Morocco's flexible exchange system.

The rate against the dollar yesterday was slightly higher at 0.09 percent, compared to the day before.

According to JP Morgan, Morocco’s central bank discretion about the new date of the launch of the reform allowed it to “limit pre-emptive demand for foreign currency.”

In addition, the American bank explains that the shock-effect of greater exchange rate flexibility should be much more muted now compared to April 2017, “as some policy steps towards exchange rate flexibility have been expected for some time already and fears of a large devaluation have been dispelled.”

JP Morgan believes that the alignment of the dirham close to its fair value combined with a limited Foreign Exchange open position in the financial and corporate sectors “explain why the currency has not come under pressure and has remained well within the band since the central bank announcement.”

“Foreign Exchange loans were only 2.7 percent of total loans in the banking system in 2017 and banks’ net open foreign exchange positions to tier 1 capital had narrowed from 10 percent in 2010 to 4 percent at the start of 2017,” added the bank.



EU to Keep US Trade Countermeasures on Hold Until August

European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
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EU to Keep US Trade Countermeasures on Hold Until August

European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS
European Commission President Ursula von der Leyen speaks during a joint press conference with Indonesian President Prabowo Subianto (not pictured) at the European Commission in Brussels, Belgium, 13 July 2025. EPA/OLIVIER MATTHYS

The EU will extend its suspension of countermeasures to US tariffs until early August as it aims for a negotiated solution on trade with the United States, European Commission President Ursula von der Leyen said on Sunday.

US President Donald Trump escalated his global trade war on Saturday and threatened to impose a 30% tariff on imports from the European Union from Aug. 1, separate from sector-specific duties, despite months of intense talks.

Announcing the extension of the halt on retaliatory measures, von der Leyen told reporters the bloc would "continue to prepare further countermeasures so we are fully prepared."

A first package of countermeasures to US tariffs on steel and aluminium that would hit 21 billion euros ($24.6 billion) in US goods was suspended in April for 90 days to allow time for negotiations.

The suspension had been due to expire on Monday.

A second package has been in the works since May and would target 72 billion euros of US goods, but these measures have not yet been made public and the final list requires approval by member states.

Von der Leyen added that use of the EU's Anti-Coercion Instrument was not yet on the table.

"The (anti-coercion) instrument is created for extraordinary situations, we are not there yet," Reuters quoted her as saying.

The instrument allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies.

Possible retaliatory steps could include restricting EU market access to goods and services, and other economic measures related to areas including foreign direct investment, financial markets and export controls.